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FEC to Return nearly $400,000
in Capital Credits in Mid-December November, 2009 Over $14 million has been returned to membership over the years The Board of Directors of Farmers’ Electric Cooperative has unanimously voted to issue capital credits totaling nearly $400,000 to the member-owners of the cooperative. The capital credit checks will be mailed to current and former members in mid-December. Over the years, a total of $14,228,034 has been returned to FEC member-owners. “As a member-owner of the cooperative, any margins, or profits, that we make are allocated back to our members based on their specific usage over a specific time frame,” said Mike Sanders, FEC CEO. At its September meeting, the FEC board approved the issuance of a total of $397,539.50. This will retire the remaining 56 percent of the1987 capital credit monies owed to the membership, as well as a portion of the 1988 capital credit monies. Capital credits are paid on a first-in, first-out basis. The amount of capital credits retired is based on the current equity level of the cooperative and the previous year’s margin. “The issuance of capital credits is but one way in which cooperatives are different than other utilities,” explained Mike Sanders, FEC CEO. “If, for example, you received your electric service from an investor-owned utility, those profits would be returned to the shareholders, and only the shareholders, as dividend payments.” Unclaimed
Capital
Credits March 2010 (Rural
Missouri Watts Up
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